Bankruptcy

  • July 28, 2020

    Mintz Properly Advised Lab About Payments, Judge Says

    An Alabama federal judge Tuesday found Mintz provided a now-bankrupt diagnostic lab sufficient warning in 2011 that its business practices could run afoul of federal law, saying an exact risk assessment was unnecessary.

  • July 28, 2020

    Rising Star: Weil's Jessica Liou

    Jessica Liou of Weil Gotshal & Manges LLP played a day-to-day role in the Chapter 11 restructuring of Pacific Gas and Electric Co., which had estimated liabilities in excess of $50 billion, 16 million customers and 24,000 workers, earning her a spot among the bankruptcy law practitioners under age 40 honored by Law360 as Rising Stars.

  • July 28, 2020

    KPMG Wants Investor's Suit Over Miller Energy Audit Tossed

    Accounting giant KPMG asked a Tennessee federal judge Monday again to toss some claims in a class action suit against the company for allegedly helping now-defunct Miller Energy Resources Inc. falsify records of its oil and gas assets.

  • July 28, 2020

    Remington Hits Ch. 11 Again Despite Virus Gun Sale Surge

    Firearm manufacturer Remington Outdoor Company Inc. filed for Chapter 11 protection in Alabama bankruptcy court, its second time since 2018, unable to cash in on a surge in gun sales spurred by the COVID-19 pandemic.

  • July 27, 2020

    Square Defends Ban On Bankruptcy-Related Transactions

    Square Inc. urged a California state judge Monday to uphold his tentative ruling ending a San Francisco bankruptcy attorney's suit that alleged it violated a state civil rights law by barring bankruptcy-related financial transactions on its service, arguing the prohibition isn't arbitrary occupational discrimination barred by the law.

  • July 27, 2020

    Banks Eye Energy Loan Sell-Off Amid Oil Downturn

    The prolonged oil slump is accelerating the efforts of many commercial banks to sell loans they've made to oil and gas drillers in order to reduce their exposure to the industry, with one bank recently striking a deal to unload its entire book of drilling loans.

  • July 27, 2020

    Paper Co. Execs Get 401(k) Fraud Suit Tossed, For Now

    A Wisconsin federal judge tossed on Monday a sprawling lawsuit claiming former executives of paper company Appvion Inc. fraudulently induced employees into sinking their retirement savings into overvalued Appvion stock that became worthless when the company hit Chapter 11 in 2017, but the judge let investors amend their complaint.

  • July 27, 2020

    Addiction Center Biz Proposes Del. Ch. 11 Sale Or Turnover

    American Addiction Centers Inc. filed a Chapter 11 plan and accompanying disclosure statement over the weekend in Delaware that calls for optionality between an all-asset sale or a more straightforward reorganization of its balance sheet.

  • July 27, 2020

    Rising Star: Proskauer's Maja Zerjal

    Proskauer Rose LLP's Maja Zerjal has shepherded Puerto Rico through its restructuring and acted as one of the lead attorneys representing creditors in Caesars Entertainment Operating Co. Inc.'s Chapter 11 case, earning her a spot as one of Law360's bankruptcy Rising Stars.

  • July 27, 2020

    OneWeb Partner To Drop $50M Into New Telecom Venture

    The ground service provider for bankrupt satellite internet service OneWeb said Monday it plans to invest $50 million in the partnership between the U.K. government and an Indian telecom company that purchased the defunct company's network for $1 billion.

  • July 27, 2020

    True Religion's Ch. 11 Plan Docs Approved Without Objection

    Premium denim retailer True Religion Apparel received approval Monday from a Delaware bankruptcy judge for its Chapter 11 disclosure statement detailing a proposed debt-for-equity swap that will wipe out $65 million of prepetition indebtedness.

  • July 27, 2020

    IRS Gets Priority Claim For Year Of Insurer's Bankruptcy Filing

    A Delaware federal court on Monday overturned a bankruptcy court's decision denying a priority claim to the Internal Revenue Service for a car insurance company's corporate income taxes, finding that the tax was incurred after the insurer filed for bankruptcy.

  • July 27, 2020

    Oil Driller Rosehill Hits Ch. 11 As Pandemic's Latest Victim

    Oil and gas driller Rosehill Resources Inc. hit Chapter 11 in a Texas bankruptcy court Monday with a prepacked $106 million debt swap plan, saying it was yet another victim of oil price wars and the COVID-19 energy plunge.

  • July 24, 2020

    Dairy Co-Op Can't Duck Antitrust Suit Over Dean Foods Deal

    A North Carolina federal court on Friday rejected a bid by Dairy Farmers of America to escape a suit from Food Lion LLC targeting its acquisition of three processing facilities from bankrupt milk producer Dean Foods in part of a much larger deal.

  • July 24, 2020

    The Week In Bankruptcy: Travel Brakes Spur Ch. 11 Activity

    Transportation entities that have been forced into bankruptcy due to the COVID-19 pandemic and the virtual elimination of discretionary travel made headlines last week as more Chapter 11 cases moved forward. Dealing with massive reductions in travel, many are offloading vehicles while seeking to restructure their businesses amid the chaotic environment.

  • July 24, 2020

    Hertz Approved For Ch. 11 Deal To Sell 182,000 Cars In 2020

    Bankrupt car rental agency Hertz Global Holdings Inc. got the nod from a Delaware judge Friday for a deal with its fleet financing lenders to sell off 182,000 vehicles by the end of the year and pay $650 million in vehicle lease obligations during the same period.

  • July 24, 2020

    10th Circ. Declines Rehearing Of Defunct Bank's Refund Row

    The Tenth Circuit on Friday denied a request by a defunct bank's corporate parent to rehear its decision to award a $4.1 million tax refund to the FDIC, after the U.S. Supreme Court had weighed in on the case.

  • July 24, 2020

    Rising Star: Kramer Levin's Rachael Ringer

    Rachael Ringer of Kramer Levin Naftalis & Frankel LLP has spent the past few years helping creditors and other stakeholders influence the course of some of the largest and most complex bankruptcies in the nation, including the cases of Purdue Pharma and the Boy Scouts of America, earning her a spot as one of four bankruptcy attorneys under 40 honored by Law360 as Rising Stars.

  • July 24, 2020

    24 Hour Fitness Gets Another Week To Work Out Rent Issues

    24 Hour Fitness told a Delaware bankruptcy judge on Friday that its debtor-in-possession lenders have given the fitness chain another week to work out terms with its landlords before they must ask for final approval of their $250 million financing package.

  • July 24, 2020

    Brooks Brothers Gets $305M Stalking Horse Bid In Ch. 11

    Men's clothing retailer Brooks Brothers has secured a $305 million stalking horse offer from apparel company SPARC Group LLC to buy at least 125 retail locations, according to documents filed Thursday in Delaware bankruptcy court.

  • July 24, 2020

    John Varvatos Approved For Ch. 11 Asset Sale To Lender

    Men's suit retailer John Varvatos Enterprises Inc. received approval Friday from a Delaware bankruptcy judge for a Chapter 11 sale of its assets to a secured lender that credit bid $76 million of its prepetition debt at an auction earlier in the week.

  • July 24, 2020

    Atlas Holdings Wins Exide's US Assets With $179M Ch. 11 Bid

    Connecticut-based Atlas Holdings LLC tentatively won Delaware Chapter 11 bidding Thursday for the North American assets of bankrupt battery maker Exide Technologies LLC, with a $178.6 million offer that beat by $8.6 million a first offer from Exide's sale-opening stalking horse.

  • July 24, 2020

    Aeromexico Gets Green Light To Dump 19 Planes In Ch. 11

    A New York bankruptcy judge has ruled that Mexican airline Aeromexico can reject the leases on 19 aircraft, allowing it to shed 15% of its fleet that the company said is surplus to what it needs to operate in the COVID-19 air travel market.

  • July 24, 2020

    Pulling Up Stakes: Hogan Lovells, White & Case, Debevoise

    In our latest roundup of deal-makers on the move, Hogan Lovells reclaimed a private equity trio from Paul Hastings and added a deal team in Singapore, White & Case nabbed a three-person capital markets team, and Debevoise opened a Luxembourg office focused on private equity funds.

  • July 23, 2020

    Ebony Creditors Seek To Force Magazine Into Bankruptcy

    Ebony magazine creditors have urged a Texas federal bankruptcy court to force the historic magazine covering Black culture, news and entertainment into Chapter 7 bankruptcy, a rare move the creditors claim is necessary because Ebony hasn't been paying its debts.

Expert Analysis

  • Opinion

    It's Time For Law Firms To Support Work-From-Home Culture

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    Now that law firms are on board with fully remote work environments, they must develop policies that match in-office culture and align partner and associate expectations, says Summer Eberhard at Major Lindsey.

  • Strategies For Purchasing IP Assets From Distressed Owners

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    In the current economy, third parties have an opportunity to strategically acquire intellectual property assets from distressed companies in or preparing for bankruptcy, and coordinating with an involved investment banker or owner prebankruptcy may afford tactical advantages, say attorneys at Faegre Drinker.

  • Opinion

    Republicans Keep Confirming Unqualified Judicial Nominees

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    What emerges from the group of 200 federal judges confirmed by the Senate under President Donald Trump is a judiciary stacked with young conservative ideologues, many of whom lack basic judicial qualifications, says Sen. Dianne Feinstein, D-Calif., ranking member of the Senate Judiciary Committee.

  • Commercial Mortgage Loan Modifications Amid COVID-19

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    As commercial real estate lenders and borrowers increasingly rely on loan modifications to address challenges posed by COVID-19, they must adapt their strategies to the specific type of loan involved, says Fernando Landa at Crosbie Gliner.

  • Tips For Crafting The Perfect Law Firm Alert

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    As lawyers have had more time to write in recent weeks, the number of law firm alerts has increased massively, but a lot of them fail to capture readers and deliver new business, says Richard Torrenzano at The Torrenzano Group.

  • Series

    Judging A Book: Elrod Reviews 'Shortlisted'

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    Renee Knake Jefferson and Hannah Brenner Johnson's new book, "Shortlisted: Women in the Shadows of the Supreme Court," is a service to an overlooked group of nine women who were considered for the U.S. Supreme Court before Justice Sandra Day O'Connor was confirmed, and offers constructive tips for women looking to break through the glass ceiling, says Fifth Circuit Judge Jennifer Elrod.

  • Mandatory State Bars Likely To Remain Intact, For Now

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    A Texas federal judge’s recent holding in McDonald v. Sorrels that mandatory bar memberships do not violate members' constitutional rights indicates that such requirements survive the U.S. Supreme Court's 2018 decision in Janus, but it may mean that the Supreme Court will address the issue in the not-too-distant future, say Majed Nachawati and Misty Farris at Fears Nachawati.

  • For Distressed M&A, An Alternative To Section 363 Sales

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    As the current wave of pandemic-induced business bankruptcies will likely increase distressed M&A activity, buyers and sellers should strongly consider an assignment for the benefit of creditors, which may be a more efficient, cost-effective and flexible business liquidation device than the more common Section 363 sale, says Jason Taketa at Manatt.

  • Opinion

    Hertz's Aborted Ch. 11 Stock Sale Smacks Of Securities Fraud

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    Hertz Global Holdings' abandoned post-Chapter 11 stock offering was an irresponsible, and likely illegal, attempt to market worthless securities to a sucker's market for bankrupt shares, says attorney consultant J.B. Heaton.

  • Tips For Prenegotiation Letter Agreements In Loan Workouts

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    Commercial real estate owners and operators attempting to negotiate loan workouts due to COVID-19's impact can benefit from drafting a prenegotiation letter agreement in order to avoid exposure if an amicable solution is not reached, say attorneys at K&L Gates.

  • 11 Keys To Success At Remote Mediation

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    Attorneys should accept that remote mediation may be their only current option for resolving a dispute and take steps to obtain a fantastic outcome for their clients, including making sure the right people attend the remote mediation and beginning the session with an apology, says Eric Meyer at FisherBroyles.

  • Health Mergers May Face Antitrust Hurdles Amid Pandemic

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    Some health care providers may see mergers with other health systems as the only way to remain viable during COVID-19, but federal agencies are maintaining strict standards for antitrust review, and interplay with bankruptcy laws could create further complications, say Kevin Hahm and Matthew Jenkins at Hunton.

  • Pandemic Could Bring Student Exodus From Legal Profession

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    A recent survey shows that law and prelaw students have serious concerns about the quality and value of remotely provided legal education, and rapid action from the legal community is necessary to prevent promising young people from leaving in favor of other professions, says Mehran Ebadolahi at TestMax.

  • The Privilege Implications Of Using Online Collaboration Tools

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    While few courts have addressed the attorney-client privilege or work-product doctrine in the context of online collaboration tools, existing case law supports five best practices as organizations increasingly use these tools in the COVID-19 era, say Christopher Campbell and Marcus Sandifer at DLA Piper.

  • Opinion

    Amend Bankruptcy Code To Add Oversight For CBA Changes

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    The Bankruptcy Code should require examiner oversight of motions to amend collective bargaining agreements as companies filing for bankruptcy amid the pandemic may seek to place a disproportionate burden of their restructuring costs on employees, says Kenneth Rosen, chairman of Lowenstein Sandler's bankruptcy practice.

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